### Nvidia's Market Collapse: A Cautionary Tale of US-China Tech Relations Nvidia, once a dominant player in the Chinese AI chip market with a staggering **95% market share**, has seen its position evaporate to **zero** due to stringent US export restrictions. CEO Jensen Huang has publicly criticized these sanctions, arguing that they not only harm Nvidia but also have broader implications for both the US and China. The company's revenue from China, which previously accounted for **20% to 25%** of its data center earnings, is now projected to be non-existent, marking a significant shift in the global tech landscape [https://www.ibtimes.co.uk/95-0-nvidia-ceo-jensen-huang-sounds-alarm-over-us-tech-sanctions-china-1748861][https://watcher.guru/news/jensen-huang-on-nvidias-china-market-collapse]. ### Breakdown of Nvidia's Market Situation 1. **Market Share Decline**: Nvidia's market share in China has plummeted from **95% to 0%** due to US export controls on AI GPUs [https://www.thedailyjagran.com/technology/nvidias-standing-in-china-has-been-wiped-out-were-assuming-zero-for-china-says-jensen-huang-10274625]. 2. **Impact on Revenue**: The loss of the Chinese market is expected to result in **zero revenue** from this region, which previously contributed significantly to Nvidia's data center revenue [https://www.tomshardware.com/tech-industry/jensen-huang-says-nvidia-china-market-share-has-fallen-to-zero]. 3. **Geopolitical Tensions**: Huang attributes this market collapse to escalating trade tensions between the US and China, labeling the situation as a **mistake** that could have long-term repercussions for both nations [https://www.scmp.com/tech/article/3329292/nvidia-chief-holds-hope-policy-change-china-market-share-drops-0-95]. 4. **Future Outlook**: Despite the current challenges, Huang remains hopeful for a policy change that could allow Nvidia to re-enter the Chinese market [https://www.scmp.com/tech/article/3329292/nvidia-chief-holds-hope-policy-change-china-market-share-drops-0-95]. ### Supporting Evidence of Market Impact - **Market Share**: Nvidia's share in the Chinese AI GPU market has dropped from **95% to 0%** [https://www.shacknews.com/article/146418/jensen-huang-nvidia-nvda-china-policy-makers]. - **Revenue Loss**: The Chinese market previously accounted for **20% to 25%** of Nvidia's data center revenue, which is now projected to be **zero** [https://www.tomshardware.com/tech-industry/jensen-huang-says-nvidia-china-market-share-has-fallen-to-zero]. - **CEO Statements**: Huang has publicly stated that the US export restrictions are detrimental to both countries, emphasizing the need for a reevaluation of these policies [https://www.newsbytesapp.com/news/business/us-export-restrictions-to-china-wipe-out-nvidia-s-market-share/story]. ### Conclusion: The Broader Implications of Nvidia's Exit from China **Nvidia's dramatic market collapse in China serves as a stark reminder of the fragility of international tech relations.** 1. **Market Dynamics**: The company's exit from the Chinese market highlights the significant impact of geopolitical tensions on global business operations. 2. **Revenue Implications**: With a complete loss of revenue from a previously lucrative market, Nvidia faces substantial financial challenges. 3. **Future Prospects**: Huang's hope for policy changes indicates a potential path forward, but the current landscape remains uncertain. In summary, Nvidia's situation underscores the complexities of navigating international trade and technology in an increasingly polarized world [https://www.ibtimes.co.uk/95-0-nvidia-ceo-jensen-huang-sounds-alarm-over-us-tech-sanctions-china-1748861][https://watcher.guru/news/jensen-huang-on-nvidias-china-market-collapse].